The Cities With the Most Stable Landlord Insurance Costs for Investors

When it comes to real estate investing and deal analysis, one often overlooked aspect is landlord insurance. In an ever-changing market, finding areas where insurance premiums are stable and affordable can make a significant difference in long-term profitability. 

Let’s dive into the numbers and explore some of the areas of the country where landlord insurance costs remain steady and below the national median.

Understanding Landlord Insurance Rates

The average nationwide landlord insurance premium is around $1,200 per year, with a premium per $1,000 total insured value (TIV) of $3.20. TIV reflects the cost of replacing the property in the event of a total loss, and premiums are often tied directly to this figure. Areas with higher insurance costs tend to have more risk factors, such as natural disasters, higher property values, or legal environments with increased landlord liability.

However, there are pockets across the U.S. where premiums fall below the national median, offering investors more predictable costs, which can be a major advantage for a long-term real estate investment strategy. Let’s take a look at some of the cities where landlord insurance remains stable.

1. Salt Lake City, Utah

Salt Lake City is a real estate market that’s grown in popularity, but its landlord insurance costs remain impressively low compared to the national average. The median premium here is around $700, with a premium per $1,000 TIV of just $1.50. This is significantly lower than the national median, making it a great place for investors seeking a stable, affordable insurance environment.

Beyond insurance, Salt Lake City’s thriving economy, steady population growth, and relatively low cost of living make it an attractive option for landlords looking to capitalize on rental demand without the burden of high overhead costs.

2. Boise, Idaho

Boise has emerged as a top investment destination in recent years due to its strong job market and influx of new residents, but it also offers one of the most affordable landlord insurance rates in the country. The median premium here is about $750, with a premium per $1,000 TIV of $2.01. While slightly higher than Salt Lake City, this still places Boise far below the national average.

Boise’s lower insurance rates make it especially appealing for investors focusing on single-family rentals or small multifamily properties. Additionally, the city continues to offer strong rental demand and favorable property appreciation.

3. Gilbert, Arizona

Located just outside Phoenix, Gilbert has gained attention for its family-friendly neighborhoods and robust real estate market. Another reason Gilbert stands out is its low landlord insurance costs, with a median premium of around $725 and a premium per $1,000 TIV of $1.60.

As more renters move to the suburbs in search of space and affordability, Gilbert presents a perfect opportunity for investors. With stable insurance premiums and a growing demand for rentals, it’s a market worth considering if you want to keep operating costs low while maximizing rental income.

4. Madison, Wisconsin

The Midwest continues to offer some of the most reliable real estate markets, and Madison, Wisconsin, is no exception. Known for its stable economy, anchored by education and healthcare sectors, Madison offers relatively affordable landlord insurance as well. The median premium is approximately $925, with a premium per $1,000 TIV of $1.99.

This Midwestern city’s reasonable insurance costs, combined with consistent rental demand from university students and young professionals, make Madison an ideal location for investors seeking both stability and affordability.

5. Maryland

For those looking to invest in the East Coast, Maryland offers a balanced option, with statewide median premiums averaging around $975 and a premium per $1,000 TIV of $2.25. While this is slightly higher than the previous cities mentioned, it is still lower than the national average. Maryland’s diverse housing markets, proximity to Washington, D.C. and Baltimore, and strong rental demand make it a solid choice for investors.

Investing in a state like Maryland gives you access to various types of rental properties, from suburban homes to urban multifamily units, all while benefiting from relatively affordable insurance rates.

Final Thoughts

When it comes to long-term real estate investment, controlling operational costs like insurance is crucial. By targeting cities with stable, affordable landlord insurance rates, investors can minimize expenses and maximize profitability.

These cities not only offer lower insurance premiums but also provide a combination of strong rental demand and economic growth, which are key factors in successful real estate investing.

As you continue building your portfolio, keep an eye on these markets and make insurance costs part of your investment decision-making process. After all, every dollar saved on insurance is another dollar earned toward your investment goals.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.